RAM NATH JAYANT Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THESE are 17 appeals filed by the above appellants against the common Order -in -Original dated 31 -10 -1997 passed by the Commissioner of Customs, New Delhi by which varyiing amounts of penalties were imposed on a number of noticees. The matter relates to the seizure of various items imported into India. The Department by show cause notice dated 12 -5 -1989 had alleged that - the noticees had acquired possession or were concerned in carrying, removing, depositing, harbouring, keeping, concealing, selling, purchasing or in some other manner concerned with the seized goods and had dealt with such goods or other smuggled goods. The Commissioner by the impugned order had held that there was enough evidence to show that the goods seized were liable to confiscation under Section 111 of the Customs Act, 1962 and they had became liable for penal action under Section 112 of the Act. In the light of the above conclusion, various amounts of penalties were imposed on the appellants under Section 112.

(2.) S /Shri J.P. Pathak, J.S. Agarwal, J.M. Sharma, Harish Gulbati and S.C. Chawla, Advocates/Consultants represented the appellants before us. Shri Mewa Singh, ld. SDR was present for the Respondent Commissioner.

(3.) SHRI J.M. Sharma, ld. Consultant appearing for the S.D. Refrigerators and others raised a preliminary point relating to the jurisdiction of the Commissioner of Customs, Delhi to pass the impugned order. He narrated the facts leading to the impugned order and submitted that as per the records, Customs Officers of Delhi Customs had conducted searches of various premises and seized certain goods and vehicles on 18 -11 -1988 and 22 -11 -1988 on the reasonable belief that the said goods were smuggled goods. The total value of the said goods amounted to Rs. 20 crores. The Department's case was that Shri Ishwar Punjabi (one of the appellants before us) was an agent supplying goods to various foreign Embassies in India. It was alleged that Shri Ishwar Punjabi and an official of the Liberian Embassy had entered into a conspiracy to smuggle goods as diplomatic cargo. Pursuant thereto the Liberian Embassay and Shri Ishwar Punjabi had obtained exemption certificate dated 25 -8 -1988 from the Ministry of External Affairs, Govt. of India for import of "construction material". Ministry of External Affairs had however, subsequently denied on 28 -11 -1988 that they had issued any such certificate. As per Bill of Entry read with the duty exemption certificate dated 25 -8 -1988 the goods were cleared at the Calcutta Port and forwarded to Delhi by road. The goods were cleared at Calcutta by declaraing them as 'construction material'. After completion of search of various premises by the Delhi Customs and further investigations conducted by them, seizure was made of the aforesaid goods in Delhi and proceedings were initiated by show cause notice dated 12 -5 -1989 against various noticees. The same was adjudicated by the Commissioner Delhi vide impugned order.